United Healthcare to pay $12M to settle complaints

Under the terms of a new agreement, United Healthcare will pay about $12 million to 37 states to address problems targeted by state insurance commissioners. As is usually the case, UH isn't copping to the allegations, which include concerns over claims handling and administrative practices.

The commissioners began an investigation into United Healthcare's claims payment practice in 2004, spurred by a high volume of complaints. The state officials, who worked with the National Association of Insurance Commissioners, are requiring UH to agree to be evaluated by an independent monitor through 2010. Among other things, the monitor will look at whether UH pays claims on time and how it handles claim denials.